Bill 2919

                    Current Status

BillNumber:                2919
Ratification Number:       192
Act Number:                110
Introducing Body:          House
Subject:                   Soft drinks license, fixation of stamps or crowns

(A110, R192, S2919)

AN ACT TO AMEND SECTION 12-21-1960, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO PERSONS WHO MUST PAY TAX ON BOTTLED DRINKS SHIPPED INTO THE STATE, SO AS TO DELETE LANGUAGE REQUIRING STAMPS OR CROWNS TO BE AFFIXED TO BOTTLED DRINKS SHIPPED IN CLOSED OR SEALED CRATES OR BOXES WITHIN TWENTY-FOUR HOURS OF RECEIPT BY THE RETAILER, TO AMEND SECTION 12-21-1710, RELATING TO ANNUAL SOFT DRINK BUSINESS LICENSES FOR DISTRIBUTORS, WHOLESALERS, AND RETAILERS, SO AS TO ELIMINATE THE FIVE DOLLAR ANNUAL LICENSE FOR RETAIL DEALERS WHO RECEIVE PREVIOUSLY UNTAXED SYRUPS OR POWDERS, TO AMEND SECTION 12-21-1720, RELATING TO PAYMENT OF THE BUSINESS LICENSE FEE FOR DISTRIBUTORS AND WHOLESALE DEALERS IN SOFT DRINKS, SO AS TO DELETE LANGUAGE REQUIRING THE LICENSE TO BE OBTAINED PRIOR TO COMMENCING BUSINESS, AND TO AMEND SECTION 12-21-2120, AS AMENDED, RELATING TO THE ALTERNATIVE METHOD OF PAYING THE SOFT DRINK TAX, SO AS TO PROVIDE FOR THOSE PERSONS THAT QUALIFY FOR THE ALTERNATIVE METHOD OF PAYING THE TAX.

Be it enacted by the General Assembly of the State of South Carolina:

Fixation of stamps or crowns

SECTION 1. Section 12-21-1960 of the 1976 Code is amended to read:

"Section 12-21-1960. In the case of bottled drinks shipped into the State from a point outside of the State the stamps or crowns must be affixed by the person first receiving them whether the person is a wholesaler, jobber, distributor, or retailer of the products. If any bottled drinks are removed from the original case, crate, or carton, these drinks must be stamped at the time of removal. If any bottled drinks are sold for use or consumption, the seller shall stamp the individual containers prior to delivery to the customer."

Soft drinks license

SECTION 2. Section 12-21-1710 of the 1976 Code is amended to read:

"Section 12-21-1710. (a) Distributors and wholesale dealers shall obtain for each place of business an annual soft drink license for which a fee of twenty-five dollars must be paid. For the purpose of this section place of business means any place where soft drinks are manufactured by a distributor, or any place where untaxed bottled soft drink syrups and powders, base products, and other items taxed under this article are received or stored by a distributor or wholesale dealer. For the purpose of this section, 'distributors or wholesale dealers' include any person who receives, stores, manufactures, bottles, or sells bottled soft drinks, soft drink syrups or powders, or base products for mixing, compounding, or making soft drinks to retail dealers or other wholesale dealers for resale purposes.

(b) Out-of-state distributors and wholesale dealers may obtain appropriate distributors' or wholesale dealers' licenses upon compliance with the provisions of this article and such regulations and administrative rules as may be issued by the Commission, for which an annual fee of twenty-five dollars must be paid for each such soft drink license.

(c) Distributors and wholesale dealers licensed under this section shall file such reports with the Commission as may be required not later than the twentieth day of each month showing transactions for the preceding month. Any person who fails to file the required reports must be penalized not less than twenty dollars nor more than one hundred dollars, to be assessed and collected in the same manner as other taxes are assessed and collected. The Commission may remit the penalty in whole or in part.

(d) Any person who operates a 'place of business' for which a license is required by this section without having first secured the license must be penalized not less than twenty dollars nor more than one hundred dollars to be assessed and collected in the same manner as other taxes are assessed and collected. Each day that the business is operated constitutes a separate offense. In addition, all bottled soft drinks found in the possession, custody, or within the control of any person who violates the license provisions of this section are hereby declared contraband and may be seized in accordance with Section 12-21-2870."

Fee

SECTION 3. Section 12-21-1720 of the 1976 Code is amended to read:

"Section 12-21-1720. The license fee provided for in Section 12-21-1710 must be paid to the Commission on or before the thirty-first day of December of each calendar year and the license is valid for the next succeeding calendar year that begins January first and ends December thirty-first."

Manner of paying tax

SECTION 4. Section 12-21-2120 of the 1976 Code, as last amended by Act 428 of 1982, is further amended to read:

"Section 12-21-2120. instead of paying the tax levied in this article in the manner otherwise provided, any manufacturer, wholesaler, distributor, or retailer may pay the tax in the following manner, with respect to bottled soft drinks:

Beginning with soft drink license taxes collected and paid after December 31, 1983, on bottled soft drinks, the manufacturer, wholesaler, distributor, or retailer subject to the tax shall make a report to the Commission, in the form as the Commission may prescribe, of all bottled soft drinks sold or disposed of within this State by the manufacturer, wholesaler, distributor, or retailer, and pay the taxes due thereon at the same rates as provided in Section 12-21-2030 not later than the twentieth of the month following the sale of the bottled soft drinks. Any person who fails to file the report or to pay the tax as prescribed herein shall pay in addition to the tax required to be paid a penalty of twenty-five percent of the tax and interest at the rate of one percent per month or fraction thereof. The interest provided for in this section shall be computed from the date the tax was originally due to the date of payment. The penalties and interest shall be assessed and collected by the Commission in the manner as other taxes are assessed and collected. The Commission may grant any person an extension of time for filing the report and paying the taxes and interest as prescribed herein. Any person filing reports and paying taxes under this section shall file with the Commission: (a) a corporate surety bond payable to the State in an amount three times the average monthly tax liability, and the surety or guaranty company must be authorized to do business in this State; or (b) deposit with the State Treasurer cash in the same amount of the bond as determined by the Commission; or (c) deposit with the Commission securities approved by the State Treasurer in an amount of value equivalent to the amount of bond determined by the Commission. The bond must be held by the Commission, without interest, as surety conditioned upon lawful operation of the business of the licensee and the prompt payment of all taxes and penalties and interest imposed by law upon the licensee."

Time effective

SECTION 5. This act shall take effect July 1, 1984.

Approved the 13th day of June, 1983.